Free «Research Paper: TOMS» UK Essay Paper
TOMS is a firm established by Blake Mycoskie in 2006 that is known for its unique basic model. The central approach of the company is that a child who lives in an impoverished area can receive the same product every time a person makes a purchase. The founder came up with this idea after he visited Argentina. He noticed that many children were forced to live in extreme poverty, and their families could not afford shoes. Therefore, he decided to combine business with a charity to have an ability to help these people. The interest from the side of the media has helped with promotion of the firm, and it started to sell surprising amounts of shoes. Its growth rate was close to 300% in 2011, and it is an enormous figure for a relatively new business. Many economists were concerned about the sustainability of this approach, but the model has proven to be efficient in the long-term. Tremendous sales allowed the organization to expand its service, and the owners started to consider other products that may benefit from this model (Mycoskie, 2016).
- It is clear that the firm is successful primarily because of the focus on social responsibility. Its message was appreciated by the public and has helped the company to improve outcome measurement. The business offers rather unique products, but it is unlikely that they would attract the attention of the public without such a powerful message. One of the recent studies suggests that the majority of customers are not aware of other products that the firm offers and are primarily interested in shoes. Therefore, TOMS has found a niche market that had no competition in this sector (Kingston & Guellil, 2016). Moreover, it managed to attract customers because the role of social responsibility increases every year, and many customers start to get interested in companies, which help people in need. It has gained enormous popularity among students, because they are educated about the importance of social responsibility and value the fact that their actions improve the society as a whole. Every purchase is much more enjoyable when a consumer understands that it would help another person. One may argue that the provision of shoes is an inefficient way to deal with poverty, but it is a critical problem that affects many actively developing countries. The company has faced criticism, but it tries to develop new products to address other issues that influence those areas. Its sunglasses program is especially worth noting, because it helps children who require medical attention.
TOMS Shoes organizes many events, and it is also a critical part of its strategy. Those activities help to spread the philanthropic message and allow the business to appear on the media without having to spend funds on marketing. This approach supports the establishment of long-term relationships with customers and enables an exchange of ideas. The use of social media is also paramount for modern companies. The marketing team focuses on such social medua platforms as Twitter and Instagram, because it understands the needs of their target market (Roncha & Radclyffe-Thomas, 2016). One of the aspects worth mentioning is that TOMS has established relationships with many nonprofit organizations all over the globe. This approach allows the firm to identify areas that require help and makes it much easier to deliver shoes. Overall, the central goal of every company is to receive profits and discussed strategy allows the business to accomplish this objective while being socially responsible.
- Efficient supply chain management is crucial for TOMS, because one of the central principles of the organization is social responsibility, and many ethical issues may occur if it does not take appropriate measures to evaluate such networks properly. Therefore, the firm takes several steps to avoid possible complications. First of all, third parties conduct assessments to ensure that there are no issues with treating employees. They monitor every link of these supply chains, because any information about the involvement in unfair practices may permanently damage the reputation of TOMS for the reason that social responsibility is a critical issue for affected stakeholders. The company has developed a detailed code of conduct, and its primary objective is to improve the focus on ethics among suppliers. Indeed, it understands that such issues as human trafficking are incredibly problematic in some countries and has no tolerance for companies that do not respect human rights. Certification is imperative to guarantee both high levels of quality and sustainability of supplied materials. The firm only cooperates with organizations that meet such strict standards.
However, the problem is that TOMS does disclose critical data such as wages and some of the policies. Additionally, it is possible to argue that it does not have an ability to control all involved supply chains. Nevertheless, it cooperates with organizations that focus on sustainability to ensure that the firm may improve its products and reduce damage caused to the environment. It does not conduct pieces of training that focus on such problems as slavery at the moment, but it plans to organize such events in the future to reduce the risks associated with misconduct (TOMS, n.d.).
- The company is profitable, because it manages to align its organizational goals with charitable activities. The model involves such stakeholders as customers, employees, communities, and others. Additionally, children from impoverished areas are also affected by the performance of the company. It is similar to a non-profit organization, but its unique model allows the firm to grow and receive tremendous benefits. Higher-ups must make decisions based on the needs of all involved stakeholders for the company to stay successful. Customers and communities value social responsibility the most, and the firm utilizes this aspect to increase profits and help children who require support at the same time. TOMS must address any criticism it receives, because it may be difficult to regain the trust of the public. Additionally, the approach that the company utilizes attracts employees that are interested in social responsibility. Most workers support the company’s mission, and it establishes cooperation and supportive environment. The feedback received from children is also incredibly valuable, and it may be necessary to alter the strategy based on their needs and preferences since it is one of the most important groups of stakeholders.
It is reasonable to determine the ways in which the company utilizes some of the principles of strategic philanthropy. The first rule is that a business must base its strategies on available data. The organization respects this principle and focuses only on well-documented problems that affect children in impoverished areas. Frequent evaluations are also of utmost importance. Their goal is to determine the overall impact of charitable activities, and it is clear that TOMS has helped to improve the situation in many areas. The last principle worth mentioning is accountability. The organization understands that its actions may affect economies in some states, and it avoids possible harm by ensuring that firms located in these countries produce a significant percentage of products. Moreover, it provides high-paying jobs that improve the overall quality of life and helps economies to grow at rapid rates. Overall, strategic philanthropy allows TOMS to devote enormous attention to social problems while gaining tremendous profits that can support such activities as team building and research.
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